Penn Virginia Corporation Announces Fourth Quarter and Full-Year 2009 Results

RADNOR, Pa.-- Penn Virginia Corporation (NYSE: PVA) today reported financial and operational results for the three months and year ended December 31, 2009 and provided an update of full-year 2010 guidance.

Fourth Quarter 2009 Highlights

Fourth quarter 2009 results, with comparisons to fourth quarter 2008 results, included the following:

    --  Record proved reserves of 942 billion cubic feet of natural gas
        equivalent (Bcfe) as of December 31, 2009, as compared to 916 Bcfe as of
        December 31, 2008;
    --  Quarterly oil and gas production of 11.3 billion cubic feet of natural
        gas equivalent (Bcfe), or 123.1 million cubic feet of natural gas
        equivalent (MMcfe) per day, as compared to 13.2 Bcfe, or 143.8 MMcfe per
        day;
    --  Operating cash flow, a non-GAAP (generally accepted accounting
        principles) measure, of $74.4 million as compared to $95.7 million;
    --  Operating income of $20.6 million, which included $11.1 million of
        non-cash impairment charges, as compared to an operating loss of $31.9
        million, which included $51.8 million of non-cash impairment charges;
    --  Adjusted net loss attributable to PVA, a non-GAAP measure which excludes
        the effects of the non-cash change in derivatives fair value,
        impairments and gains or losses that affect comparability to the prior
        year period, of $0.4 million, or $0.01 per diluted share, as compared to
        adjusted net income of $10.7 million, or $0.26 per diluted share;
    --  Net loss attributable to PVA of $5.4 million, or $0.12 per diluted
        share, as compared to net loss attributable to PVA of $0.5 million, or
        $0.01 per diluted share; and
    --  Financial liquidity consisting of undrawn borrowing capacity and cash
        balances at December 31, 2009, pro forma to include the net proceeds
        from our January 2010 Gulf Coast divestiture,of approximately $410
        million, as compared to approximately $150 million on December 31, 2008.

Reconciliations of non-GAAP financial measures to GAAP-based measures appear in the financial tables later in this release.

Management Comment

A. James Dearlove, President and Chief Executive Officer, said, "Compared to the prior year quarter, we experienced significant declines in commodity prices and a 14 percent decrease in oil and gas production resulting from our decision to suspend drilling during a large part of 2009. However, the fourth quarter of 2009 came in as expected and we believe we are well-positioned for growth in 2010 and beyond. As detailed in our separate operational update, fourth quarter production was at the high end of our expectations and we expect growth of six to 13 percent in 2010, pro forma the divestiture of our Gulf Coast assets. Due to the improved pricing environment and outlook for natural gas we have recommenced drilling and currently have six operated rigs running in our core plays.

"For 2010, we have hedged approximately 55 percent of our estimated natural gas production, at average floor and ceiling prices of $6.09 and $8.19 per MMBtu, respectively. During 2009 and through January 2010, we raised over $510 million from the issuances of debt and equity securities and the sale of non-core assets, including a portion of our position in PVG. As a result, we have substantially improved our financial liquidity, with $300 million of unused availability on our revolving credit facility and over $100 million of cash on hand. We expect our strong hedge and liquidity positions to facilitate future growth in our focused, resource play-driven operations.

"In addition to our core oil and gas exploration and production business segment, we own 51 percent of Penn Virginia GP Holdings, L.P. (NYSE: PVG). PVG owns the general partner of Penn Virginia Resource Partners, L.P. (NYSE: PVR) and is PVR's largest limited partner unitholder. As the owner of the general partner and largest unitholder of PVG, we report our financial results on a consolidated basis with the financial results of PVG. At current distribution rates, our ownership of PVG and PVR provides us approximately $30 million of annualized pre-tax cash flow."

Full-Year 2009 Consolidated Results

For the year ended December 31, 2009, operating cash flow was $280.5 million, as compared to $413.8 million in 2008. We incurred an operating loss of $98.2, which included charges of $127.7 million for impairments on assets held for sale, drilling rig standby charges and other impairments, as compared to operating income in 2008 of $256.8 million, which included charges of $51.8 million for impairments and $31.4 million of gains on the sale of assets. The adjusted net loss attributable to PVA, which excludes the effects of non-cash impairments, change in derivatives fair value, drilling rig standby charges and gains on the sale of assets, was $14.1 million, or $0.32 per diluted share, as compared to adjusted net income attributable to PVA of $85.5 million, or $2.03 per diluted share, in 2008. The net loss attributable to PVA was $114.6 million, or $2.62 per diluted shared, as compared to net income attributable to PVA of $121.1 million, or $2.87 per diluted share, in 2008 due primarily to the decrease in operating income. Oil and gas production increased nine percent to a record 51.0 Bcfe and proved reserves increased three percent to a record 942 Bcfe. At PVR, lessee coal production and natural gas midstream system throughput volumes were also fiscal year records for those segments.

Oil and Gas Segment Review

Fourth quarter oil and gas production decreased 14 percent to 11.3 Bcfe, or 123.1 MMcfe per day, from 13.2 Bcfe, or 143.8 MMcfe per day, in the fourth quarter of 2008, and nine percent from 12.4 Bcfe, or 134.9 MMcfe per day, in the third quarter of 2009. See our separate operational update news release dated February 4, 2010 for a more detailed discussion of operations for the oil and gas segment.

For the fourth quarter of 2009, the oil and gas segment operating loss of $8.0 million was a $16.5 million improvement over the operating loss of $24.5 million in the prior year quarter. Adjusting for a non-cash impairment charges (primarily on assets held for sale and subsequently divested) of $9.6 million in the fourth quarter of 2009 and a non-cash impairment charge of $20.0 million in the fourth quarter of 2008, operating income was $1.6 million, or $6.1 million greater than operating loss of $4.5 million in the prior year quarter. The increase in adjusted operating income was due to a $30.1 million decrease in non-cash exploration and depreciation, depletion and amortization (DD&A) expenses and a $3.0 million decrease in cash operating expenses, due to reduced drilling and production in the fourth quarter of 2009, partially offset by a $26.9 million decrease in total revenues. The 31 percent decrease in total revenues was primarily due to a $2.03 per thousand cubic feet (Mcf), or 32 percent, decrease in the natural gas price and the 14 percent production decrease, partially offset by a 41 percent increase in the oil price and a 36 percent increase in the price of natural gas liquids (NGLs).

In the fourth quarter of 2009, total oil and gas segment expenses, excluding the impairment and rig standby charges, decreased by $32.5 million, or 36 percent, to $57.9 million, or $5.11 per Mcfe produced, from $90.5 million, or $6.84 per Mcfe produced, in the fourth quarter of 2008, as discussed below:

    --  Fourth quarter 2009 cash operating expenses were $23.4 million, or $2.06
        per Mcfe produced, as compared to $26.4 million, or $1.99 per Mcfe
        produced, in the fourth quarter of 2008. The increase in unit cash
        operating expenses was primarily due to higher segment general and
        administrative (G&A) expense and taxes other than income, partially
        offset by lower lease operating expense, as discussed below:
        o Lease operating expense decreased seven percent to $1.14 per Mcfe from
          $1.22 per Mcfe primarily due to decreased overall service costs due to
          lower commodity prices;
        o Taxes other than income increased 17 percent to $0.34 per Mcfe from
          $0.29 per Mcfe primarily due to the production decrease; and
        o Segment G&A expense increased 20 percent to $0.59 per Mcfe as compared
          to $0.49 per Mcfe primarily due to the production decrease and
          additional costs related to an office relocation.

    --  Exploration expense decreased 87 percent to $2.9 million in the fourth
        quarter of 2009, as compared to $22.7 million in the prior year quarter,
        due in part to a lack of exploratory drilling in the fourth quarter of
        2009 and $13.9 million of charges in the prior year quarter for dry-hole
        costs and a write-off of leasehold acquisition costs.
    --  DD&A expense decreased by $10.2 million, or 25 percent, to $31.2
        million, or $2.74 per Mcfe, in the fourth quarter of 2009 from $41.4
        million, or $3.13 per Mcfe, in the prior year quarter. The overall
        decrease in DD&A expense was primarily due to the production decrease
        and a lower depletion rate per unit of production. The lower depletion
        rate was primarily due to an impairment of Gulf Coast assets held for
        sale (subsequently divested) during the third quarter of 2009 and
        increasing contributions to production from the high-return Granite Wash
        play.

During the fourth quarter of 2009, we incurred approximately $9.6 million of impairments. These charges were primarily related to Gulf Coast assets held for sale which were subsequently sold in January 2010.

Coal & Natural Resource Management and Natural Gas Midstream Segment Review (PVR and PVG)

As the owner of the general partner and largest unitholder of PVG, we report our financial results on a consolidated basis with the financial results of PVG. A conversion of the GAAP-compliant financial statements ("As reported") to the equity method of accounting ("As adjusted") is included in the "Conversion to Non-GAAP Equity Method" table in this release. Using the equity method, PVG's results are reduced to a few line items and the results from oil and gas operations are therefore highlighted. We believe that the financial statements presented using the equity method are less complex and more comparable to those of other oil and gas exploration and production companies. Financial and operational results and full-year 2010 guidance for each of PVR's segments are provided in the financial tables later in this release. In addition, operational updates for these segments are discussed in more detail in PVR's news release dated February 10, 2010. Please visit PVR's website, www.pvresource.com, under "For Investors" for a copy of the release.

As previously announced, on February 19, 2010, PVG will pay to unitholders of record as of February 2, 2010 a quarterly cash distribution of $0.38 per unit, or an annualized rate of $1.52 per unit. The distribution remains unchanged from the distribution paid in the previous quarter. As a result of PVG's distribution, we will receive a cash distribution of $7.6 million in the first quarter of 2010, or $30.5 million on an annualized basis.

Capital Resources, Credit Facility and Impact of Derivatives

As of December 31, 2009, we had outstanding borrowings of $530.0 million ($498.4 million carrying value), consisting of $300 million ($291.7 million carrying value) of senior unsecured notes due 2016 and $230.0 million ($206.7 million carrying value) of convertible senior subordinated notes due 2012 and no borrowings against our revolving credit facility. The $32.0 million decrease in outstanding borrowings as compared to the $562.0 million at December 31, 2008 was primarily due to the repayment of revolver debt following a $64.9 million offering of PVA common shares in May 2009 and a $118.1 million offering of PVG common units in September 2009, as well as free cash flow during the second half of 2009, net of spending to fund our oil and gas capital expenditures. Currently, we have $300 million of unused availability on our revolving credit facility and over $100 million of cash on hand.

As of December 31, 2009, PVR had outstanding borrowings of $620.1 million under its $800 million revolving credit facility with remaining revolver borrowing capacity of $178.3 million. The $52.0 million increase in outstanding PVR borrowings as compared to $568.1 million outstanding as of December 31, 2008 was primarily due to PVR capital expenditures during 2009. PVR's debt is non-recourse to PVA.

Consolidated interest expense increased from $14.0 million in the fourth quarter of 2008 to $18.6 million in the fourth quarter of 2009. The increase was due to a higher interest rate on the senior unsecured notes PVA issued in June 2009 and higher average level of outstanding borrowings during the fourth quarter of 2009 as compared to the prior year quarter.

Due to decreases in natural gas and crude oil prices experienced during the fourth quarter, the mark-to-market valuation of our and PVR's open hedging positions resulted in derivatives income of $3.4 million in the fourth quarter as compared to derivatives income of $51.0 million in the prior year quarter. Included in derivatives income for the fourth quarter of 2009 was $11.1 million of income related to our oil and gas segment and $7.7 million of expense related to PVR. Fourth quarter 2009 cash settlements of our oil and gas derivatives resulted in net cash receipts of $10.3 million, as compared to $5.8 million of net cash receipts in the same quarter of 2008. PVR's fourth quarter 2009 cash settlements of commodity and interest rate derivatives result in net cash payments of $1.1 million, as compared to $5.2 million of net cash payments in the same quarter of 2008.

Guidance for 2010

See the Guidance Table included in this release for guidance estimates for full-year 2010. These estimates, including capital expenditure plans, which were discussed in our operational update, are meant to provide guidance only and are subject to revision as our and PVR's operating environments change.

Full-Year and Fourth Quarter 2009 Financial and Operational Results Conference Call

A conference call and webcast, during which management will discuss fourth quarter 2009 financial and operational results, is scheduled for Thursday, February 11, 2010 at 3:00 p.m. ET. Prepared remarks by A. James Dearlove, President and Chief Executive Officer, will be followed by a question and answer period. Investors and analysts may participate via phone by dialing 1-866-630-9986 five to ten minutes before the scheduled start of the conference call, or via webcast by logging on to our website, www.pennvirginia.com, at least 15 minutes prior to the scheduled start of the call to download and install any necessary audio software. A telephonic replay of the call will be available for two weeks by dialing 1-888-203-1112 (international: 1-719-457-0820) and using the following replay code: 7649645. An on-demand replay of the conference call will be available for two weeks at our website.

Penn Virginia Corporation (NYSE: PVA) is an independent natural gas and oil company focused on the exploration, acquisition, development and production of reserves in onshore regions of the U.S., including East Texas, Mississippi, the Mid-Continent region and the Appalachian Basin. We also own approximately 51 percent of PVG, the owner of the general partner and the largest unit holder of PVR, a manager of coal and natural resource properties and related assets and the operator of a midstream natural gas gathering and processing business. For more information, please visit PVA's website at www.pennvirginia.com.

Certain statements contained herein that are not descriptions of historical facts are "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Because such statements include risks, uncertainties and contingencies, actual results may differ materially from those expressed or implied by such forward-looking statements. These risks, uncertainties and contingencies include, but are not limited to, the following: the volatility of commodity prices for natural gas, NGLs, crude oil and coal; our ability to access external sources of capital; uncertainties relating to the occurrence and success of capital-raising transactions, including securities offerings and asset sales; reductions in the borrowing base under our Revolver; our ability to develop and replace oil and gas reserves and the price for which such reserves can be acquired; any impairment write-downs of our reserves or assets; reductions in our anticipated capital expenditures; the relationship between natural gas, NGL, crude oil and coal prices; the projected demand for and supply of natural gas, NGLs, crude oil and coal; the availability and costs of required drilling rigs, production equipment and materials; our ability to obtain adequate pipeline transportation capacity for our oil and gas production; competition among producers in the oil and natural gas and coal industries generally and among natural gas midstream companies; the extent to which the amount and quality of actual production of our oil and natural gas or PVR's coal differ from estimated proved oil and gas reserves and recoverable coal reserves; PVR's ability to generate sufficient cash from its businesses to maintain and pay the quarterly distribution to its general partner and its unitholders; the experience and financial condition of PVR's coal lessees and natural gas midstream customers, including the lessees' ability to satisfy their royalty, environmental, reclamation and other obligations to PVR and others; whether the sale of our Gulf Coast assets closes during the fourth quarter and at the anticipated price; operating risks, including unanticipated geological problems, incidental to our business and to PVR's coal or natural gas midstream businesses; PVR's ability to acquire new coal reserves or natural gas midstream assets and new sources of natural gas supply and connections to third-party pipelines on satisfactory terms; PVR's ability to retain existing or acquire new natural gas midstream customers and coal lessees; the ability of PVR's lessees to produce sufficient quantities of coal on an economic basis from PVR's reserves and obtain favorable contracts for such production; the occurrence of unusual weather or operating conditions including force majeure events; delays in anticipated start-up dates of our oil and natural gas production, of PVR's lessees' mining operations and related coal infrastructure projects and new processing plants in PVR's natural gas midstream business; environmental risks affecting the drilling and producing of oil and gas wells, the mining of coal reserves or the production, gathering and processing of natural gas; the timing of receipt of necessary governmental permits by us and by PVR or PVR's lessees; hedging results; accidents; changes in governmental regulation or enforcement practices, especially with respect to environmental, health and safety matters, including with respect to emissions levels applicable to coal-burning power generators; uncertainties relating to the outcome of current and future litigation regarding mine permitting; risks and uncertainties relating to general domestic and international economic (including inflation, interest rates and financial and credit markets) and political conditions (including the impact of potential terrorist attacks); PVG's ability to generate sufficient cash from its interests in PVR to maintain and pay the quarterly distribution to its unitholders; uncertainties relating to our continued ownership of interests in PVG and PVR; and other risks set forth in our Annual Report on Form 10-K for the fiscal year ended December 31, 2008.

Additional information concerning these and other factors can be found in our press releases and public periodic filings with the SEC, including our Annual Report on Form 10-K for the year ended December 31, 2008. Many of the factors that will determine our future results are beyond the ability of management to control or predict. Readers should not place undue reliance on forward-looking statements, which reflect management's views only as of the date hereof. We undertake no obligation to revise or update any forward-looking statements, or to make any other forward-looking statements, whether as a result of new information, future events or otherwise.


PENN VIRGINIA CORPORATION

CONSOLIDATED STATEMENTS OF EARNINGS - unaudited

(in thousands, except per share data)

                           Three Months Ended        Year Ended

                           December 31,              December 31,

                           2009         2008 (a)     2009          2008 (a)

Revenues

Natural gas                $ 40,361     $ 73,165     $ 169,666     $ 368,801

Crude oil                    11,846       9,087        43,258        46,529

Natural gas liquids          5,182        2,405        15,735        21,292
(NGLs)

Natural gas midstream        138,893      95,523       428,016       589,783

Coal royalties               29,987       33,923       120,435       122,834

Gain on sale of property     427          91           2,345         31,426
and equipment

Other                        10,201       11,496       35,682        40,186

Total revenues               236,897      225,690      815,137       1,220,851

Expenses

Cost of midstream gas        105,275      76,374       333,854       484,621
purchased

Operating                    20,249       23,238       86,766        89,891

Exploration                  3,383        22,671       37,970        42,436

Exploration - drilling       (530    )    -            19,784        -
rig standby charges - (b)

Taxes other than income      5,417        5,261        22,073        28,586

General and
administrative (excluding    19,793       17,313       67,274        66,612
equity compensation)

Equity-based compensation    1,420        2,175        12,726        7,882
- (c)

Depreciation, depletion      50,207       58,755       223,367       192,236
and amortization

Impairments on assets        9,500        -            97,400        -
held for sale

Impairments                  1,598        51,764       10,526        51,764

Loss on sale of assets       -            -            1,599         -

Total expenses               216,312      257,551      913,339       964,028

Operating income (loss)      20,585       (31,861 )    (98,202  )    256,823

Other income (expense)

Interest expense             (18,552 )    (13,986 )    (68,884  )    (49,299   )

Derivatives                  3,376        50,969       11,854        46,582

Other                        338          116          2,612         (666      )

Income (loss) before
income taxes and             5,747        5,238        (152,620 )    253,440
noncontrolling interests

Income tax benefit           5,665        2,432        75,252        (71,920   )
(expense)

Net income (loss)          $ 11,412     $ 7,670      $ (77,368  )  $ 181,520

Less net income
attributable to              (16,763 )    (8,184  )    (37,275  )    (60,436   )
noncontrolling interests

Income (loss)              $ (5,351  )  $ (514    )  $ (114,643 )  $ 121,084
attributable to PVA

Income (loss) per share
attributable to PVA

Basic                      $ (0.12   )  $ (0.01   )  $ (2.62    )  $ 2.89

Diluted                    $ (0.12   )  $ (0.01   )  $ (2.62    )  $ 2.87

Weighted average shares      45,434       41,907       43,811        41,760
outstanding, basic

Weighted average shares      45,434       41,907       43,811        42,031
outstanding, diluted

                           Three Months Ended        Year Ended

                           December 31,              December 31,

                           2009         2008         2009          2008

Production

Natural gas (MMcf)           9,480        11,624       43,338        41,493

Crude oil (MBbls)            162          175          750           506

NGLs (MBbls)                 146          92           527           392

Total natural gas, crude
oil and NGL production       11,328       13,226       51,000        46,881
(MMcfe)

Prices

Natural gas ($ per Mcf)    $ 4.26       $ 6.29       $ 3.91        $ 8.89

Crude oil ($ per Bbl)      $ 73.12      $ 51.93      $ 57.68       $ 91.95

NGLs ($ per Bbl)           $ 35.49      $ 26.14      $ 29.86       $ 54.32




(a) As a result of adopting accounting guidance for convertible debt instruments
that may be settled in cash upon conversion (including partial cash settlement),
we are required to present our results of operations retrospectively as if the
standard had been in effect for all periods presented.

(b) Drilling rig standby charges represent fees paid in connection with the
deferral of drilling associated with contractually committed rigs and frac tank
rentals.

(c) Our equity-based compensation expense includes our stock option expense and
the amortization of restricted stock and restricted stock units related to
employee awards in accordance with accounting guidance of share-based payments.




PENN VIRGINIA CORPORATION

CONSOLIDATED BALANCE SHEETS - unaudited

(in thousands)

                                            December 31,  December 31,

                                            2009          2008

Assets

Current assets                              $ 306,542     $ 263,518

Net property and equipment                    2,352,358     2,512,177

Other assets                                  236,907       220,870

Total assets                                $ 2,895,807   $ 2,996,565

Liabilities and shareholders' equity

Current liabilities                         $ 160,835     $ 247,594

Long-term debt of PVR                         620,100       568,100

Revolving credit facility                     -             332,000

Senior notes                                  291,749       -

Convertible notes                             206,678       199,896

Other liabilities and deferred taxes          264,558       312,645

PVA shareholders' equity                      1,021,976     1,039,103

Noncontrolling interests                      329,911       297,227

Total shareholders' equity                    1,351,887     1,336,330

Total liabilities and shareholders' equity  $ 2,895,807   $ 2,996,565




CONSOLIDATED STATEMENTS OF CASH FLOWS - unaudited

(in thousands)

                           Three Months Ended         Year Ended

                           December 31,               December 31,

                           2009         2008          2009          2008

Cash flows from operating
activities

Net income (loss)          $ 11,412     $ 7,670       $ (77,368  )  $ 181,520

Adjustments to reconcile
net income (loss) to net
cash provided by
operating activities:

Depreciation, depletion      50,207       58,755        223,367       192,236
and amortization

Impairments                  11,098       51,764        107,926       51,764

Derivative contracts:

Total derivative losses      (2,512  )    (49,618  )    (5,333   )    (41,102  )
(gains)

Cash receipts (payments)     9,211        654           61,147        (46,086  )
to settle derivatives

Deferred income taxes        (12,496 )    (1,554   )    (83,224  )    58,551

Dry hole and unproved        2,802        20,855        33,278        35,847
leasehold expense

Other                        4,660        7,214         20,724        (18,904  )

Operating cash flow (see
attached table

"Certain Non-GAAP            74,382       95,740        280,517       413,826
Financial Measures")

Changes in operating         (20,458 )    11,347        (4,570   )    (30,052  )
assets and liabilities

Net cash provided by         53,924       107,087       275,947       383,774
operating activities

Cash flows from investing
activities

Acquisitions                 (8,633  )    (15,562  )    (46,894  )    (293,747 )

Additions to property and    (20,901 )    (193,308 )    (239,459 )    (585,339 )
equipment

Other                        7,543        (435     )    16,241        33,519

Net cash used in             (21,991 )    (209,305 )    (270,112 )    (845,567 )
investing activities

Cash flows from financing
activities

Dividends paid               (2,558  )    (2,361   )    (9,836   )    (9,398   )

Distributions paid to
noncontrolling interest      (22,806 )    (18,416  )    (78,171  )    (64,245  )
holders

Proceeds from (repayments    -            (38,889  )    (7,542   )    7,542
of) bank borrowings

Net proceeds from
(repayments of) PVA          -            152,000       (332,000 )    210,000
borrowings

Net proceeds from PVR        (8,000  )    10,000        52,000        156,000
borrowings

Net proceeds from
issuance of PVA senior       -            -             291,009       -
notes

Net proceeds from
issuance of PVR partners'    -            -             -             138,141
capital

Net proceeds from sale of    -            -             118,080       -
PVG units

Net proceeds from            -            -             64,835        -
issuance of PVA equity

Other                        (5,272  )    (785     )    (24,217  )    7,564

Net cash provided by         (38,636 )    101,549       74,158        445,604
financing activities

Net increase (decrease)
in cash and cash             (6,703  )    (669     )    79,993        (16,189  )
equivalents

Cash and cash equivalents    105,034      19,007        18,338        34,527
- beginning of period

Cash and cash equivalents  $ 98,331     $ 18,338      $ 98,331      $ 18,338
- end of period





PENN VIRGINIA CORPORATION

QUARTERLY SEGMENT INFORMATION - unaudited

(in thousands except where noted)

Three months
ended December  Oil and Gas
31, 2009                                Coal and
                                        Natural     Natural Gas  Eliminations  Consolidated
                                        Resource    Midstream    and Other
                Amount       per Mcfe   Management
                             (a)


Production

Total natural
gas, crude oil    11,328
and NGLs
(MMcfe)

Natural gas       9,480
(MMcf)

Crude oil         162
(MBbls)

NGLs (MBbls)      146

Coal royalty
tons                                      8,456
(thousands of
tons)

Midstream
system                                                27,902
throughput
volumes (MMcf)

Revenues

Natural gas     $ 40,361     $ 4.26     $ -         $ -          $ -           $ 40,361

Crude oil         11,846       73.12      -           -            -             11,846

NGLs              5,182        35.49      -           -            -             5,182

Natural gas       -                       -           155,907      (17,014 )     138,893
midstream

Coal royalties    -                       29,987      -            -             29,987

Gain on sale
of property       427                     -           -            -             427
and equipment

Other             1,176                   6,038       2,969        18            10,201

Total revenues    58,992       5.21       36,025      158,876      (16,996 )     236,897

Expenses

Cost of
midstream gas     -                       -           121,454      (16,179 )     105,275
purchased

Operating         12,911       1.14       2,080       6,093        (835    )     20,249
expense

Exploration       3,383        0.30       -           -            -             3,383

Exploration -
drilling rig      (530    )    (0.05 )    -           -            -             (530    )
standby
charges

Taxes other       3,800        0.34       558         1,028        31            5,417
than income

General and       6,655        0.59       3,107       3,640        7,811         21,213
administrative

Depreciation,
depletion and     31,187       2.74       7,773       10,491       756           50,207
amortization

Impairments on
assets held       9,500        0.84       -           -            -             9,500
for sale

Impairments       87           0.01       1,511       -            -             1,598

Total expenses    66,993       5.91       15,029      142,706      (8,416  )     216,312

Operating       $ (8,001  )  $ (0.70 )  $ 20,996    $ 16,170     $ (8,580  )   $ 20,585
income (loss)

Additions to
property and    $ 21,805                $ 206       $ 7,180      $ 343         $ 29,534
equipment

Three months
ended December  Oil and Gas
31, 2008                                Coal and
                                        Natural     Natural Gas  Eliminations  Consolidated
                                        Resource    Midstream    and Other
                Amount       per Mcfe   Management
                             (a)


Production

Total natural
gas, crude oil    13,226
and NGLs
(MMcfe)

Natural gas       11,624
(MMcf)

Crude oil         175
(MBbls)

NGLs (MBbls)      92

Coal royalty
tons                                      8,715
(thousands of
tons)

Midstream
system                                                29,786
throughput
volumes (MMcf)

Revenues

Natural gas     $ 73,165     $ 6.29     $ -         $ -          $ -           $ 73,165

Crude oil         9,087        51.93      -           -            -             9,087

NGLs              2,405        26.14      -           -            -             2,405

Natural gas       -                       -           118,875      (23,352 )     95,523
midstream

Coal royalties    -                       33,923      -            -             33,923

Gain on sale
of property       91                      -           -            -             91
and equipment

Other             1,191                   8,394       1,793        118           11,496

Total revenues    85,939       6.50       42,317      120,668      (23,234 )     225,690

Expenses

Cost of
midstream gas     -                       -           98,752       (22,378 )     76,374
purchased

Operating         16,089       1.22       2,418       5,706        (975    )     23,238
expense

Exploration       22,671       1.71       -           -            -             22,671

Taxes other       3,856        0.29       565         676          164           5,261
than income

General and       6,415        0.49       2,826       3,741        6,506         19,488
administrative

Depreciation,
depletion and     41,427       3.13       8,072       8,772        484           58,755
amortization

Impairments       19,963       1.51       -           31,801       -             51,764

Total expenses    110,421      8.35       13,881      149,448      (16,199 )     257,551

Operating       $ (24,482 )  $ (1.85 )  $ 28,436    $ (28,780 )  $ (7,035  )   $ (31,861 )
income (loss)

Additions to
property and    $ 184,246               $ 2,084     $ 22,011     $ 529         $ 208,870
equipment




(a) Natural gas revenues are shown per Mcf, crude oil and NGL revenues are
shown per Bbl, and all other amounts are shown per Mcfe.





PENN VIRGINIA CORPORATION

YEAR-TO-DATE SEGMENT INFORMATION - unaudited

(in thousands except where noted)

Year ended
December 31,    Oil and Gas
2009                                     Coal and    Natural
                                         Natural     Gas        Eliminations  Consolidated
                                         Resource    Midstream  and Other
                Amount        per Mcfe   Management
                              (a)


Production

Total natural
gas, crude oil    51,000
and NGLs
(MMcfe)

Natural gas       43,338
(MMcf)

Crude oil         750
(MBbls)

NGLs (MBbls)      527

Coal royalty
tons                                       34,330
(thousands of
tons)

Midstream
system                                                 121,335
throughput
volumes (MMcf)

Revenues

Natural gas     $ 169,666     $ 3.91     $ -         $ -        $ -           $ 169,666

Crude oil         43,258        57.68      -           -          -             43,258

NGLs              15,735        29.86      -           -          -             15,735

Natural gas       -                        -           504,789    (76,773  )    428,016
midstream

Coal royalties    -                        120,435     -          -             120,435

Gain on sale
of property       2,345                    -           -          -             2,345
and equipment

Other             4,080                    24,165      7,315      122           35,682

Total revenues    235,084       4.61       144,600     512,104    (76,651  )    815,137

Expenses

Cost of
midstream gas     -                        -           406,583    (72,729  )    333,854
purchased

Operating         55,699        1.09       8,660       26,451     (4,044   )    86,766
expense

Exploration       37,970        0.74       -           -          -             37,970

Exploration -
drilling rig      19,784        0.39       -           -          -             19,784
standby
charges

Taxes other       16,556        0.32       1,704       3,090      723           22,073
than income

General and       22,625        0.44       13,867      16,301     27,207        80,000
administrative

Depreciation,
depletion and     150,429       2.96       31,330      38,905     2,703         223,367
amortization

Impairments on
assets held       97,400        1.91       -           -          -             97,400
for sale

Impairments       9,015         0.18       1,511       -          -             10,526

Loss on sale      1,599         0.03       -           -          -             1,599
of assets

Total expenses    411,077       8.06       57,072      491,330    (46,140  )    913,339

Operating       $ (175,993 )  $ (3.45 )  $ 87,528    $ 20,774   $ (30,511  )  $ (98,202   )
income (loss)

Additions to
property and    $ 203,678                $ 2,252     $ 78,425   $ 1,998       $ 286,353
equipment

Year ended
December 31,    Oil and Gas
2008                                     Coal and    Natural
                                         Natural     Gas        Eliminations  Consolidated
                                         Resource    Midstream  and Other
                Amount        per Mcfe   Management
                              (a)


Production

Total natural
gas, crude oil    46,881
and NGLs
(MMcfe)

Natural gas       41,493
(MMcf)

Crude oil         506
(MBbls)

NGLs (MBbls)      392

Coal royalty
tons                                       33,690
(thousands of
tons)

Midstream
system                                                 98,683
throughput
volumes (MMcf)

Revenues

Natural gas     $ 368,801     $ 8.89     $ -         $ -        $ -           $ 368,801

Crude oil         46,529        91.95      -           -          -             46,529

NGLs              21,292        54.32      -           -          -             21,292

Natural gas       -                        -           720,002    (130,219 )    589,783
midstream

Coal royalties    -                        122,834     -          -             122,834

Gain on sale
of property       30,634                   792         -          -             31,426
and equipment

Other             2,074                    29,701      8,251      160           40,186

Total revenues    469,330       10.01      153,327     728,253    (130,059 )    1,220,851

Expenses

Cost of
midstream gas     -                        -           612,530    (127,909 )    484,621
purchased

Operating         59,459        1.27       11,940      20,737     (2,245   )    89,891
expense

Exploration       42,436        0.91       -           -          -             42,436

Taxes other       23,336        0.50       1,680       2,578      992           28,586
than income

General and       21,284        0.45       12,606      14,300     26,304        74,494
administrative

Depreciation,
depletion and     132,276       2.82       30,805      27,361     1,794         192,236
amortization

Impairments       19,963        0.43       -           31,801     -             51,764

Total expenses    298,754       6.37       57,031      709,307    (101,064 )    964,028

Operating       $ 170,576     $ 3.64     $ 96,296    $ 18,946   $ (28,995  )  $ 256,823
income (loss)

Additions to
property and    $ 607,220                $ 27,270    $ 304,758  $ (60,162  )  $ 879,086
equipment




(a) Natural gas revenues are shown per Mcf, crude oil and NGL revenues are shown
per Bbl, and all other amounts are shown per Mcfe.




PENN VIRGINIA CORPORATION

CERTAIN NON-GAAP FINANCIAL MEASURES - unaudited

(in thousands)

                              Three Months Ended       Year Ended

                              December 31,             December 31,

                              2009        2008         2009          2008

Reconciliation of GAAP "Net
cash provided by operating
activities" to Non-GAAP
"Operating cash flow"

Net cash provided by          $ 53,924    $ 107,087    $ 275,947     $ 383,774
operating activities

Adjustments:

Changes in operating assets     20,458      (11,347 )    4,570         30,052
and liabilities

Operating cash flow (a)       $ 74,382    $ 95,740     $ 280,517     $ 413,826

Reconciliation of GAAP "Net
income (loss) attributable
to PVA" to Non-GAAP "Net
income (loss) attributable
to PVA, as adjusted"

Net income (loss)             $ (5,351 )  $ (514    )  $ (114,643 )  $ 121,084
attributable to PVA

Adjustments for derivatives:

Derivative losses (gains)       (2,512 )    (49,618 )    (5,333   )    (41,102 )
included in income

Cash receipts (payments) to     9,211       654          61,147        (46,086 )
settle derivatives

Adjustment for drilling rig     (530   )    -            19,784        -
standby charges

Adjustment for impairments      11,098      51,764       107,926       51,764

Adjustment for net gains on     (427   )    (91     )    (746     )    (31,426 )
sale of assets

Impact of adjustments on        (6,629 )    (3,033  )    (16,123  )    10,616
noncontrolling interests

Impact of adjustments on        (5,183 )    11,616       (66,042  )    20,955
income taxes

                              $ (323   )  $ 10,778     $ (14,030  )  $ 85,805

Less: Portion of subsidiary
net income (loss) allocated
to undistributed share-based    (42    )    (40     )    (116     )    (295    )
compensation awards, net of
taxes

Net income (loss)
attributable to PVA, as       $ (365   )  $ 10,738     $ (14,146  )  $ 85,510
adjusted (b)

Net income (loss)
attributable to PVA, as       $ (0.01  )  $ 0.26       $ (0.32    )  $ 2.03
adjusted, per share, diluted




(a) Operating cash flow represents net cash provided by operating activities
before changes in operating assets and liabilities. We believe that operating
cash flow is widely accepted as a financial indicator of an energy company's
ability to generate cash which is used to internally fund investing activities,
service debt and pay dividends. Operating cash flow is widely used by investors
and professional research analysts in the valuation, comparison, rating and
investment recommendations of companies within the energy industry. Operating
cash flow is presented because we believe it is a useful adjunct to net cash
provided by operating activities under GAAP. Operating cash flow is not a
measure of financial performance under GAAP and should not be considered as an
alternative to cash flows from operating, investing or financing activities, as
an indicator of cash flows, as a measure of liquidity or as an alternative to
net income.

(b) Net income (loss) attributable to PVA as adjusted represents net income
(loss) attributable to PVA adjusted to exclude the effects of non-cash changes
in the fair value of derivatives, drilling rig standby charges, impairments,
gains and losses on the sale of assets and net income of PVR allocated to
unvested PVR restricted units awarded as equity compensation that we hold until
vesting. We believe this presentation is commonly used by investors and
professional research analysts in the valuation, comparison, rating and
investment recommendations of companies within the oil and gas exploration and
production industry, as well as companies within the natural gas midstream
industry. We use this information for comparative purposes within these
industries. Net income (loss) attributable to PVA, as adjusted, is not a measure
of financial performance under GAAP and should not be considered as a measure of
liquidity or as an alternative to net income attributable to PVA.





PENN VIRGINIA CORPORATION

CONVERSION TO NON-GAAP EQUITY METHOD - unaudited

(in thousands)

Reconciliation of GAAP "Income Statements As Reported" to Non-GAAP "Income Statements, as
Adjusted" (a):

                Three months ended December 31, 2009      Three months ended December 31, 2008

                As Reported   Adjustments   As Adjusted   As Reported    Adjustments   As Adjusted

Revenues

Natural gas     $ 40,361      $ -           $ 40,361      $ 73,165       $ -           $ 73,165

Crude oil         11,846        -             11,846        9,087          -             9,087

NGLs              5,182         -             5,182         2,405          -             2,405

Natural gas       138,893       (138,893 )    -             95,523         (95,523  )    -
midstream

Coal royalties    29,987        (29,987  )    -             33,923         (33,923  )    -

Other             10,628        (9,007   )    1,621         11,587         (10,187  )    1,400

Total revenues    236,897       (177,887 )    59,010        225,690        (139,633 )    86,057

Expenses

Cost of
midstream gas     105,275       (105,275 )    -             76,374         (76,374  )    -
purchased

Operating         20,249        (8,173   )    12,076        23,238         (7,150   )    16,088

Exploration       3,383         -             3,383         22,671         -             22,671

Exploration -
drilling rig      (530     )    -             (530     )    -              -             -
standby
charges

Taxes other       5,417         (1,586   )    3,831         5,261          (1,241   )    4,020
than income

General and       21,213        (7,146   )    14,067        19,488         (6,919   )    12,569
administrative

Depreciation,
depletion and     50,207        (18,264  )    31,943        58,755         (16,844  )    41,911
amortization

Impairments on
assets held       9,500         -             9,500         -              -             -
for sale

Impairments       1,598         (1,511   )    87            51,764         (31,801  )    19,963

Loss on sale      -             -             -             -              -             -
of assets

Total expenses    216,312       (141,955 )    74,357        257,551        (140,329 )    117,222

Operating         20,585        (35,932  )    (15,347  )    (31,861   )    696           (31,165 )
income (loss)

Other income
(expense)

Interest          (18,552  )    6,167         (12,385  )    (13,986   )    7,306         (6,680  )
expense

Derivatives       3,376         7,709         11,085        50,969         (23,261  )    27,708

Equity
earnings in       -             5,626         5,626         -              7,408         7,408
PVG and PVR

Other             338           (333     )    5             116            (333     )    (217    )

Income (loss)
before taxes
and               5,747         (16,763  )    (11,016  )    5,238          (8,184   )    (2,946  )
noncontrolling
interests

Income tax
benefit           5,665         -             5,665         2,432          -             2,432
(expense)

Net income        11,412        (16,763  )    (5,351   )    7,670          (8,184   )    (514    )
(loss)

Less net
income
attributable      (16,763  )    16,763        -             (8,184    )    8,184         -
to
noncontrolling
interests

Net income
(loss)          $ (5,351   )  $ -           $ (5,351   )  $ (514      )  $ -           $ (514    )
attributable
to PVA

                Year ended December 31, 2009              Year ended December 31, 2008

                As Reported   Adjustments   As Adjusted   As Reported    Adjustments   As Adjusted

Revenues

Natural gas     $ 169,666     $ -           $ 169,666     $ 368,801      $ -           $ 368,801

Crude oil         43,258        -             43,258        46,529         -             46,529

NGLs              15,735        -             15,735        21,292         -             21,292

Natural gas       428,016       (428,016 )    -             589,783        (589,783 )    -
midstream

Coal royalties    120,435       (120,435 )    -             122,834        (122,834 )    -

Other             38,027        (31,480  )    6,547         71,612         (38,744  )    32,868

Total revenues    815,137       (579,931 )    235,206       1,220,851      (751,361 )    469,490

Expenses

Cost of
midstream gas     333,854       (333,854 )    -             484,621        (484,621 )    -
purchased

Operating         86,766        (35,111  )    51,655        89,891         (30,367  )    59,524

Exploration       37,970        -             37,970        42,436         -             42,436

Exploration -
drilling rig      19,784        -             19,784        -              -             -
standby
charges

Taxes other       22,073        (4,794   )    17,279        28,586         (4,258   )    24,328
than income

General and       80,000        (32,545  )    47,455        74,494         (28,976  )    45,518
administrative

Depreciation,
depletion and     223,367       (70,235  )    153,132       192,236        (58,166  )    134,070
amortization

Impairments on
assets held       97,400        -             97,400        -              -             -
for sale

Impairments       10,526        (1,511   )    9,015         51,764         (31,801  )    19,963

Loss on sale      1,599         -             1,599         -              -             -
of assets

Total expenses    913,339       (478,050 )    435,289       964,028        (638,189 )    325,839

Operating         (98,202  )    (101,881 )    (200,083 )    256,823        (113,172 )    143,651
income (loss)

Other income
(expense)

Interest          (68,884  )    24,653        (44,231  )    (49,299   )    24,672        (24,627 )
expense

Derivatives       11,854        19,714        31,568        46,582         (16,837  )    29,745

Equity
earnings in       -             21,592        21,592        -              42,162        42,162
PVG and PVR

Other             2,612         (1,353   )    1,259         (666      )    2,739         2,073

Income (loss)
before taxes
and               (152,620 )    (37,275  )    (189,895 )    253,440        (60,436  )    193,004
noncontrolling
interests

Income tax
benefit           75,252        -             75,252        (71,920   )    -             (71,920 )
(expense)

Net income        (77,368  )    (37,275  )    (114,643 )    181,520        (60,436  )    121,084
(loss)

Less net
income
attributable      (37,275  )    37,275        -             (60,436   )    60,436        -
to
noncontrolling
interests

Net income
(loss)          $ (114,643 )  $ -           $ (114,643 )  $ 121,084      $ -           $ 121,084
attributable
to PVA




(a) Equity method income statements represent consolidated income statements,
minus 100% of PVG's consolidated results of operations, plus noncontrolling
interest which represents the portion of PVG's consolidated results of
operations that we do not own. We believe equity method income statements
provide useful information to allow the public to more easily discern PVG's
effect on our operations.





PENN VIRGINIA CORPORATION

CONVERSION TO NON-GAAP EQUITY METHOD - unaudited (continued)

(in thousands)

Reconciliation of GAAP "Balance Sheet As Reported" to Non-GAAP "Balance Sheet, as Adjusted" (a):

                       December 31, 2009                             December 31, 2008

                       As Reported    Adjustments     As Adjusted    As Reported    Adjustments   As Adjusted

Assets

Current assets         $ 306,542      $ (107,782   )  $ 198,760      $ 263,518      $ (126,299 )  $ 137,219

Net property and         2,352,358      (900,844   )    1,451,514      2,512,177      (895,119 )    1,617,058
equipment

Equity investment in     -              155,692         155,692        -              241,296       241,296
PVG and PVR

Other assets             236,907        (210,437   )    26,470         220,870        (206,256 )    14,614

Total assets           $ 2,895,807    $ (1,063,371 )  $ 1,832,436    $ 2,996,565    $ (986,378 )  $ 2,010,187

Liabilities and
shareholders' equity

Current liabilities    $ 160,835      $ (86,323    )  $ 74,512       $ 247,594      $ (89,908  )  $ 157,686

Long-term debt           1,118,527      (620,100   )    498,427        1,099,996      (568,100 )    531,896

Other liabilities and    264,558        (27,037    )    237,521        312,645        (31,143  )    281,502
deferred taxes

                                                                                                    -

PVA shareholders'        1,021,976      -               1,021,976      1,039,103      -             1,039,103
equity

Noncontrolling           329,911        (329,911   )    -              297,227        (297,227 )    -
interests

Total shareholders'      1,351,887      (329,911   )    1,021,976      1,336,330      (297,227 )    1,039,103
equity

Total liabilities and  $ 2,895,807    $ (1,063,371 )  $ 1,832,436    $ 2,996,565    $ (986,378 )  $ 2,010,187
shareholders' equity

Reconciliation of GAAP "Statement of Cash Flows As Reported" to Non-GAAP "Statement of Cash Flows, as Adjusted"
(b):

                       Three months ended December 31, 2009          Three months ended December 31, 2008

                       As Reported    Adjustments     As Adjusted    As Reported    Adjustments   As Adjusted

Cash flows from
operating activities

Net income (loss)      $ 11,412       $ -             $ 11,412       $ 7,670        $ -           $ 7,670

Adjustments to
reconcile net income
(loss) to net cash
provided by operating
activities:

Depreciation,
depletion and            50,207         (18,264    )    31,943         58,755         (16,844  )    41,911
amortization

Impairments              11,098         (1,511     )    9,587          51,764         (31,801  )    19,963

Derivative contracts:

Total derivative         (2,512    )    (8,466     )    (10,978   )    (49,618   )    21,909        (27,709   )
losses (gains)

Cash receipts
(payments) to settle     9,211          1,135           10,346         654            5,187         5,841
derivatives

Deferred income taxes    (12,496   )  -                 (12,496   )    (1,554    )    -             (1,554    )

Dry hole and unproved    2,802          -               2,802          20,855         -             20,855
leasehold expense

Investment in PVG and    -              (23,224    )    (23,224   )    -              (15,592  )    (15,592   )
PVR

Cash distributions       -              7,347           7,347          -              11,571        11,571
from PVG and PVR

Other                    4,660          (1,357     )    3,303          7,214          (2,631   )    4,583

Operating cash flow      74,382         (44,340    )    30,042         95,740         (28,201  )    67,539

Changes in operating
assets and               (20,458   )    8,303           (12,155   )    11,347         (4,299   )    7,048
liabilities

Net cash provided by     53,924         (36,037    )    17,887         107,087        (32,500  )    74,587
operating activities

Net cash used in         (21,991   )    7,111           (14,880   )    (209,305  )    24,753        (184,552  )
investing activities

                                                                                                    -

Net cash provided by     (38,636   )    30,806          (7,830    )    101,549        8,416         109,965
financing activities

Net increase
(decrease) in cash       (6,703    )    1,880           (4,823    )    (669      )    669           -
and cash equivalents

Cash and cash
equivalents-beginning    105,034        (21,194    )    83,840         19,007         (19,007  )    -
of period

Cash and cash
equivalents-end of     $ 98,331       $ (19,314    )  $ 79,017       $ 18,338       $ (18,338  )  $ -
period

                       Year ended December 31, 2009                  Year ended December 31, 2008

                       As Reported    Adjustments     As Adjusted    As Reported    Adjustments   As Adjusted

Cash flows from
operating activities

Net income (loss)      $ (77,368   )  $ -             $ (77,368   )  $ 181,520      $ -           $ 181,520

Adjustments to
reconcile net income
(loss) to net cash
provided by operating
activities:

Depreciation,
depletion and            223,367        (70,235    )    153,132        192,236        (58,166  )    134,070
amortization

Impairments              107,926        (1,511     )    106,415        51,764         (31,801  )    19,963

Derivative contracts:

Total derivative         (5,333    )    (22,700    )    (28,033   )    (41,102   )    11,357        (29,745   )
losses (gains)

Cash settlements of      61,147         (3,000     )    58,147         (46,086   )    38,466        (7,620    )
derivatives

Deferred income taxes    (83,224   )    -               (83,224   )    58,551         -             58,551

Dry hole and unproved    33,278         -               33,278         35,847         -             35,847
leasehold expense

Investment in PVG and    -              (62,911    )    (62,911   )    -              (102,598 )    (102,598  )
PVR

Cash distributions       -              42,279          42,279         -              44,018        44,018
from PVG and PVR

Other                    20,724         (2,620     )    18,104         (18,904   )    (1,421   )    (20,325   )

Operating cash flow      280,517        (120,698   )    159,819        413,826        (100,145 )    313,681

Changes in operating
assets and               (4,570    )    4,763           193            (30,052   )    6,976         (23,076   )
liabilities

Net cash provided by     275,947        (115,935   )    160,012        383,774        (93,169  )    290,605
operating activities

Net cash used in         (270,112  )    79,530          (190,582  )    (845,567  )    331,030       (514,537  )
investing activities

                                                                                                    -

Net cash provided by     74,158         35,429          109,587        445,604        (225,696 )    219,908
financing activities

Net increase
(decrease) in cash       79,993         (976       )    79,017         (16,189   )    12,165        (4,024    )
and cash equivalents

Cash and cash
equivalents-beginning    18,338         (18,338    )    -              34,527         (30,503  )    4,024
of period

Cash and cash
equivalents-end of     $ 98,331       $ (19,314    )  $ 79,017       $ 18,338       $ (18,338  )  $ -
period




(a) Equity method balance sheets represent consolidated balance sheets, minus
100% of PVG's consolidated balance sheets, excluding noncontrolling interests
which represents the portion of PVG's consolidated balance sheet that we do not
own and including other adjustments to eliminate inter-company transactions. We
believe equity method balance sheets provide useful information to allow the
public to more easily discern PVG's effect on our assets, liabilities and
shareholders' equity.

(b) Equity method statements of cash flows represent consolidated statements of
cash flows, minus 100% of PVG's consolidated statements of cash flows, excluding
noncontrolling interests which represents the portion of PVG's consolidated
results of operations that we do not own and including other adjustments to
eliminate inter-company transactions. We believe equity method statements of
cash flows provide useful information to allow the public to more easily discern
PVG's effect on our cash flows.




PENN VIRGINIA CORPORATION

GUIDANCE TABLE - unaudited

(dollars in millions except where noted)

We are providing the following guidance regarding financial and operational
expectations for full-year 2010.

                        Actual

                        First    Second   Third    Fourth   YTD    Full-Year
Oil & Gas Segment:      Quarter  Quarter  Quarter  Quarter  2009   2010 Guidance
                        2009     2009     2009     2009

Production:

Natural gas (Bcf) -     11.8     11.4     10.6     9.5      43.3   38.2  - 41.4
(a)

Crude oil (MBbls) -     171      215      202      162      750    900   - 975
(a)

NGLs (MBbls)            147      140      94       146      527    575   - 625

Equivalent              13.7     13.6     12.4     11.3     51.0   47.0  - 51.0
production (Bcfe)

Equivalent daily
production (MMcfe       152.3    149.5    134.9    123.1    139.7  128.8 - 139.7
per day)

Expenses:

Cash operating
expenses ($ per       $ 1.80     1.79     1.82     2.06     1.86   1.95  - 2.10
Mcfe)

Exploration           $ 21.3     17.5     16.1     2.8      57.7   40.0  - 50.0

Depreciation,
depletion and         $ 2.92     2.94     3.17     2.74     2.96   3.00  - 3.10
amortization ($ per
Mcfe)

Impairments           $ 1.2      3.3      92.4     9.6      106.4

Capital
expenditures:

Development drilling  $ 76.5     37.3     8.3      18.1     140.2  250.0 - 275.0

Exploratory drilling  $ 1.5      -        0.7      0.3      2.5    40.0  - 50.0

Pipeline, gathering,  $ 5.1      2.4      0.9      1.0      9.4    7.0   - 8.0
facilities

Seismic               $ 0.7      0.4      0.1      -        1.2    10.0  - 11.0

Lease acquisition,
field projects and    $ 1.8      2.8      5.8      8.1      18.5   68.0  - 81.0
other

Total segment         $ 85.6     42.9     15.8     27.5     171.8  375.0 - 425.0
capital expenditures

Coal and Natural
Resource Segment
(PVR):

Coal royalty tons       8.7      8.7      8.4      8.5      34.3   31.0  - 32.0
(millions)

Revenues:

Average coal          $ 3.50     3.43     3.56     3.55     3.51   3.30  - 3.40
royalties per ton

Average coal
royalties per ton,    $ 3.36     3.25     3.37     3.38     3.34   3.15  - 3.25
net of coal
royalties expense

Other                 $ 7.6      5.1      5.4      6.0      24.1   21.0  - 22.0

Expenses:

Cash operating        $ 5.9      6.6      6.0      5.7      24.2   22.0  - 22.5
expenses

Depreciation,
depletion and         $ 7.4      8.2      8.0      7.8      31.3   28.5  - 29.0
amortization

Capital
expenditures:

Expansion and         $ 1.3      0.6      0.1      0.1      2.1    6.0   - 7.0
acquisitions

Other capital         $ -        -        -        0.2      0.2    -     - 0.5
expenditures

Total segment         $ 1.3      0.6      0.1      0.3      2.3    6.0   - 7.5
capital expenditures

Natural Gas
Midstream Segment
(PVR):

System throughput
volumes (MMcf per       359      344      324      303      332    350   - 360
day) (b)

Expenses:

Cash operating        $ 11.8     11.6     11.6     10.8     45.8   55.0  - 60.0
expenses

Depreciation,
depletion and         $ 9.1      9.5      9.8      10.5     38.9   42.0  - 44.0
amortization

Capital
expenditures:

Expansion and         $ 11.2     10.3     37.9     5.0      64.4   34.0  - 42.0
acquisitions

Other capital         $ 3.3      1.4      1.4      2.3      8.4    16.0  - 18.0
expenditures

Total segment         $ 14.5     11.7     39.3     7.3      72.8   50.0  - 60.0
capital expenditures

Corporate and Other:

General and
administrative        $ 5.2      5.8      6.4      7.4      24.8   22.0  - 24.0
expense - PVA

General and
administrative        $ 0.5      0.6      0.9      0.4      2.4    2.5   - 3.0
expense - PVG

Interest expense:

PVA end of period     $ 591.5    564.3    496.3    498.4    498.4
debt outstanding

PVA average interest    4.3%     6.0%     9.8%     12.6%    8.2%
rate

PVR end of period     $ 595.1    597.1    628.1    620.1    620.1
debt outstanding

PVR average interest    3.9%     4.2%     4.2%     3.9%     4.1%
rate

Income tax rate         38.8%    39.7%    38.7%    51.4%    39.6%

Cash distributions
received from PVG     $ 11.5     11.6     11.5     7.6      42.2
and PVR

Other capital         $ 0.6      0.9      0.2      0.3      2.0    1.5   - 2.0
expenditures

These estimates are meant to provide guidance only and are subject to change as
PVA's and PVR's operating environments change.

See Notes on
subsequent pages.




PENN VIRGINIA CORPORATION

GUIDANCE TABLE - unaudited - (continued)

Notes to Guidance Table:

(a) The following table shows our current derivative positions in the oil and
gas segment as of December 31, 2009:

                                                   Weighted Average Price

                                   Average Volume  Additional  Floor  Ceiling
                                   Per Day         Put Option

Natural gas costless collars       (MMBtu)         ($ per MMBtu)

First quarter 2010                 35,000                      4.96   7.41

Second quarter 2010                30,000                      5.33   8.02

Third quarter 2010                 30,000                      5.33   8.02

Fourth quarter 2010                50,000                      5.65   8.77

First quarter 2011                 50,000                      5.65   8.77

Second quarter 2011                30,000                      5.67   7.58

Third quarter 2011                 30,000                      5.67   7.58

Fourth quarter 2011                20,000                      6.00   8.50

First quarter 2012                 20,000                      6.00   8.50

Natural gas three-way collars (1)  (MMBtu)         ($ per MMBtu)

First quarter 2010                 30,000          6.83        9.50   13.60

Natural gas swaps                  (MMBtu)         ($ per MMBtu)

First quarter 2010                 15,000                      6.19

Second quarter 2010                30,000                      6.17

Third quarter 2010                 30,000                      6.17

Crude oil costless collars         (barrels)       ($ per barrel)

First quarter 2010                 500                         60.00  74.75

Second quarter 2010                500                         60.00  74.75

Third quarter 2010                 500                         60.00  74.75

Fourth quarter 2010                500                         60.00  74.75



We estimate that, excluding the derivative positions described above, for every $1.00 per MMBtu increase or decrease in the natural gas price, oil and gas segment operating income for 2010 would increase or decrease by approximately $17.8 million. In addition, we estimate that for every $5.00 per barrel increase or decrease in the crude oil price, oil and gas segment operating income for 2010 would increase or decrease by approximately $1.8 million. This assumes that crude oil prices, natural gas prices and inlet volumes remain constant at anticipated levels. These estimated changes in gross margin and operating income exclude potential cash receipts or payments in settling these derivative positions.

(1) A three-way collar is a combination of options: a sold call, a purchased put and a sold put. The sold call establishes the maximum price that we will receive for the contracted commodity volumes. The purchased put establishes the minimum price that we will receive for the contracted volumes unless the market price for the commodity falls below the sold put strike price, at which point the minimum price equals the reference price (i.e., NYMEX) plus the excess of the purchased put strike price over the sold put strike price.


PENN VIRGINIA CORPORATION

GUIDANCE TABLE - unaudited - (continued)

     The costless collar natural gas prices per MMBtu per quarter include the
(b)  effects of basis differentials, if any. The following table shows current
     derivative positions for natural gas production in PVR's natural gas
     midstream segment as of December 31, 2009:




                              Average    Swap           Weighted Average Price
                              Volume

                              Per Day    Price          Put     Call

Crude oil collar              (barrels)                 ($ per barrel)

First quarter 2010 through    750                       70.00   81.25
fourth quarter 2010

Crude oil collar              (barrels)                 ($ per barrel)

First quarter 2010 through    1,000                     68.00   80.00
fourth quarter 2010

Natural gas purchase swap     (MMBtu)    ($ per MMbtu)

First quarter 2010 through    5,000      5.815
fourth quarter 2010

NGL - natural gasoline        (gallons)                 (per gallon)
collar

First quarter 2011 through    60,000                    $1.55   $1.92
fourth quarter 2011

Crude oil collar              (barrels)                 (per barrel)

First quarter 2011 through    400                       $75.00  $98.50
fourth quarter 2011

Natural gas purchase swap     (MMBtu)    ($ per MMBtu)

First quarter 2011 through    3,000      6.430
fourth quarter 2011



We estimate that, excluding the derivative positions described above, for every $1.00 per MMBtu increase or decrease in the natural gas price, natural gas midstream gross margin and operating income for 2010 would decrease or increase by approximately $6.9 million. In addition, we estimate that for every $5.00 per barrel increase or decrease in the crude oil price, natural gas midstream gross margin and operating income for 2010 would increase or decrease by approximately $11.5 million. This assumes that crude oil prices, natural gas prices and inlet volumes remain constant at anticipated levels. These estimated changes in gross margin and operating income exclude potential cash receipts or payments in settling these derivative positions.


    Source: Penn Virginia Corporation